VA Awards $4.6M for Fresno Medical Center Mechanical System Replacement

Contract Overview

Contract Amount: $4,634,584 ($4.6M)

Contractor: Sentinel Builders, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-24

End Date: 2026-04-11

Contract Duration: 1,326 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL CONSTRUCTION SERVICES FOR THE REPLACE MECHANICAL SYSTEMS BUILDING 1 PROJECT AT THE FRESNO VA MEDICAL CENTER.

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93703

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.6 million to SENTINEL BUILDERS, LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL CONSTRUCTION SERVICES FOR THE REPLACE MECHANICAL SYSTEMS BUILDING 1 PROJECT AT THE FRESNO VA MEDICAL CENTER. Key points: 1. Contract awarded to Sentinel Builders, LLC for essential facility upgrades. 2. Competition method indicates a potentially competitive bidding process. 3. Risk is moderate, focusing on construction project timelines and budget adherence. 4. Sector is Commercial and Institutional Building Construction, vital for healthcare infrastructure.

Value Assessment

Rating: good

The contract value of $4.6M appears reasonable for a mechanical system replacement in a medical center. Benchmarking against similar VA or large-scale institutional construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method might impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance and upgrades, aiming for long-term operational efficiency and patient care quality.

Public Impact

Ensures continued operation and modernization of critical healthcare facilities. Supports local economy through construction jobs and services. Improves energy efficiency and reliability of building systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex construction projects.
Delays in project completion impacting facility operations.
Ensuring compliance with all building codes and VA standards.

Positive Signals

Addresses critical infrastructure needs for veteran healthcare.
Utilizes a competitive process to secure a qualified contractor.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for healthcare facilities. Spending in this sector is often driven by infrastructure needs, modernization efforts, and regulatory compliance.

Small Business Impact

The contract data does not indicate specific provisions or set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight is crucial to manage project scope, budget, schedule, and quality to ensure taxpayer value.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for construction delays.
Risk of unforeseen site conditions.
Contractor financial stability.
Ensuring adherence to VA specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.6 million to SENTINEL BUILDERS, LLC. THE CONTRACTOR SHALL PROVIDE ALL CONSTRUCTION SERVICES FOR THE REPLACE MECHANICAL SYSTEMS BUILDING 1 PROJECT AT THE FRESNO VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is SENTINEL BUILDERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2022-08-24. End: 2026-04-11.

What is the specific scope of 'mechanical systems' being replaced and how does this impact long-term operational costs?

The scope typically includes HVAC, plumbing, and electrical systems essential for building operation. A comprehensive replacement can lead to significant long-term savings through improved energy efficiency, reduced maintenance, and enhanced system reliability, ultimately benefiting operational budgets and patient comfort.

What are the primary risks associated with a firm fixed-price contract for this type of construction project?

The primary risk with a firm fixed-price contract is that the contractor bears the burden of cost overruns. If unforeseen issues arise during construction (e.g., material price increases, site conditions), the contractor may face financial losses, potentially impacting quality or leading to disputes. Conversely, the government benefits from cost certainty.

How effectively does the 'full and open competition after exclusion of sources' method balance competition with specialized needs?

This method aims to balance competition by allowing all qualified sources to bid after excluding those deemed unsuitable or unnecessary for specific reasons. It can be effective when certain criteria must be met, potentially leading to better-suited contractors than unrestricted competition, while still encouraging multiple bids to achieve fair pricing.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77622B0022

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5945 LOS ALTOS PKWY STE 103, SPARKS, NV, 89436

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,634,584

Exercised Options: $4,634,584

Current Obligation: $4,634,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline